New Delhi: India and Canada are seeking to stabilize their trade ties this week and held their first high-level economic talks since last year when political tensions soured bilateral relations, India’s Ministry of Commerce and Industry said on Friday.
Maninder Sidhu, Canada’s Minister for Export Promotion, International Trade and Economic Development, who visited New Delhi from November 11 to 14 at the invitation of Commerce and Industry Minister Piyush Goyal, met his Indian counterpart at the Seventh Ministerial Dialogue on Trade and Investment.
In a statement, the Department of Commerce said: “In line with the guidance provided by the Heads of Government of the two countries during their bilateral meeting on the sidelines of the G7 meeting in Kananaskis, Canada, and in accordance with the Joint Statement by Foreign Ministers on ‘Renewing Momentum Towards a Stronger Partnership’ dated October 13, 2025, which identified trade as the cornerstone of 7 bilateral economic growth and the bilateral edition of the Ministerial Dialogue on Trade and Investment (MDTI).
The ministers reaffirmed the strength and continuity of the India-Canada economic partnership and reiterated their commitment to deepen bilateral cooperation through sustained dialogue, mutual respect and forward-looking initiatives, it added.
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Back from the abyss
India-Canada ties have soured sharply in recent years, largely due to long-standing tensions over the Khalistan separatist movement. The relationship reached a tipping point after the June 2023 killing of Sikh activist Hardeep Singh Nijjar in British Columbia, when then-Prime Minister Justin Trudeau claimed there was credible evidence linking the incident to Indian government agents, an allegation that Delhi dismissed as unfounded. The fallout prompted reciprocal diplomatic expulsions, a freeze on trade negotiations and another expulsion in late 2024, related to Canada’s ongoing investigation. These incidents have pushed the relationship between the two countries to one of its lowest points in decades.
The Department of Commerce added: “Ministers noted strong growth in bilateral trade in goods and services to reach $23.66 billion in 2024, with trade in goods valued at nearly $8.98 billion, a significant 10% increase over the previous year. Ministers reaffirmed the strength and resilience of the India-Canada sector for the continued trade partnership and highlighted the importance of new business opportunities for private economic partnerships.”
“They welcomed the continued expansion of two-way investment flows, including notable Canadian institutional investment in India and the growing presence of Indian firms in Canada, which together support tens of thousands of jobs in both economies. Ministers committed to maintaining an open, transparent and predictable investment environment and exploring opportunities for deeper cooperation across priority and emerging sectors,” they said.
Bilateral trade in goods and services between India and Canada will reach $23.66 billion in 2024, an increase of $12.7 billion from 2023.
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Focus on emerging sectors
Discussions between Goyal and Sidhu focused heavily on emerging sectors where both economies see strategic complementarities. The ministers agreed to foster long-term supply chain partnerships in critical minerals, an area critical to their clean energy transitions, and to deepen cooperation in aerospace and industrial capabilities, where Canadian firms have a long-standing presence in India and India’s aerospace market is one of the fastest growing globally, the Commerce Department said.
“Ministers expressed satisfaction with the progress made in enhancing bilateral economic engagement and reaffirmed their shared commitment to elevate the economic partnership to reflect global developments and evolving supply chain and trade dynamics,” it added.
“They emphasized the importance of maintaining momentum in bilateral dialogue and fostering people-to-people ties that provide a solid foundation for partnership,” they said.
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